Crude gained from the day lows as buoyed by comments from OPEC Secretary General Abdullah al-Badri that an E.U. ban on Iranian crude would send prices rising despite abundant supply to make up for the shortfall.
Some support seen from the rupee weakness which retreated from a near 3-month high, weighed by weak equities, dollar demand from a local steelmaker and oil importers.
The EU is set to ban Iranian crude imports in July to sanction the Middle Eastern country for its nuclear ambitions.
Should such a move come to pass, expect prices to climb not on supply issues, as other countries could step in and make up for Iran's loss, but on the geopolitical worries that would follow. Currently, OPEC nations are pumping 600,000 barrels per day over their new target of 30 million barrels.
Oil futures traded erratically as Greek Finance Minister Venizelos cited national dignity as the reason he rejected a euro zone proposal to appoint a commissioner to oversee the Greek budget implementation.
Now technically market is trading in the range as RSI for 18days is currently indicating 35.88, where as 50DMA is at 5201.08 and crude is trading below the same and getting support at 4918 and below could see a test of 4891 level, And resistance is now likely to be seen at 4970, a move above could see prices testing 4995.
Trading Ideas:
Crude trading range is 4891-4995.
Crude oil added to losses on Greek debt worries and a stronger US dollar though support seen from rupee weakness.
Greek FM cited national dignity as the reason he rejected proposal to appoint a commissioner to oversee the Greek budget.
Bearish sentiment emerge as OPEC issued a statement saying that the oil market is very well supplied.
Courtesy: Kedia Commodities
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